In an opinion piece in the Samoa Observer he called this view ignorant, or prejudiced.
Earlier this month, an American official claimed China was "using predatory economics" and "debt for sovereignty deals".
But Mr Chao called this ridiculous.
Claims that loans from China are a quid pro quo for recipient nations' political sovereignty is "Cold War" thinking not supported by evidence, he said.
"China's foreign aid is offered on the basis of equality, with full respect for the will of the governments and people," he wrote.